Wyeth Upbeat About Earnings
Wyeth (WYE) said Wednesday that several regulatory, research and manufacturing issues won't affect the company's estimated earnings for the year.
In fact, "if current business trends continue," Wyeth could produce full-year earnings per share at the upper end of the previously predicted range of $2.97 to $3.07, the company said after the markets had closed.
The prediction excludes any potential restructuring charges that could result from the company's continuing review of its business processes, Wyeth said. The consensus EPS forecast is $3.08, according to Thomson First Call.
"We expect to deliver on our stated goal of growing earnings at a meaningfully faster rate than revenue," said Robert Essner, chairman and CEO, in a prepared statement.In regular trading, the stock lost 58 cents, or 1.3%, to close at $43.82. After hours, it lost another 2 cents. Although the Madison, N.J., drugmaker is scheduled to release second-quarter results on July 20, it decided to inform investors about several recent developments that could affect its future sales and profit. They include a warning from the Food and Drug Administration about its manufacturing practices, additional clinical trials for an experimental antidepressant and a delay in launching a new oral contraceptive. Wyeth sent a "timely response" to a May 8 warning letter from the FDA that cited problems at a Puerto Rico plant, based on an inspection that was conducted from early November through mid-December. "We are very disappointed to receive this letter from the FDA," said Essner in a telephone conference call with analysts. The company said it has put a "comprehensive corrective action plan in place and is working with the regional FDA office to determine next steps," adding that it wants to address the agency's concerns as soon as possible. Over the years, failure to act quickly or effectively on manufacturing problems by some drugmakers has led to the government's seizing products, imposing drastic fines or establishing lengthy monitoring programs. "Failure to make prompt corrections could result in regulatory action without further notice," said the FDA warning letter to Wyeth.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV